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Jakarta Post

Investment of US$2.9t expected for 2025-2029: Bappenas

News Desk (The Jakarta Post)
Jakarta
Thu, December 19, 2024

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Investment of US$2.9t expected for 2025-2029: Bappenas The first phase of Batang integrated industrial zone (KIT) in Central Java is seen in this aerial picture. In total it spans 4,300 hectares, but only 850 ha have been cleared for development. Phase one’s 450 ha are fully booked, the operator claims, and the remaining land for phase two is now available for sale. (Batang Industrial Park/-)

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aden Siliwanti, an expert staffer at the National Development Planning Ministry/National Development Planning Agency (Bappenas), has said the total investment needed for the next five years of 2025-2029 amounts to Rp 47,587.3 trillion (US$2.9 trillion).

"On average, it is around Rp 9,517.5 trillion per year," she said in Jakarta on Wednesday, as quoted by Antara news agency.

This investment will come from three main sources: the government, state-owned enterprises and the private sector. Based on the composition of spending, the private sector will be the largest contributor.

"We expect this [private sector] to contribute around 86.7 percent, or about Rp 41,277 trillion," Siliwanti said.

Meanwhile, the government's investment will be approximately 6.9 percent, or around Rp 3,282.7 trillion and the SOEs will account for 6.4 percent, or Rp 3,027.7 trillion.

"This highlights the crucial role of the private sector in supporting the national economy moving forward," Siliwanti said.

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She said that efficient and transformative investment was key to driving the economy in the 2025-2029 period.

Siliwanti said investment could create new, evenly distributed sources of growth across the country.

The government plans to achieve this by enhancing agricultural productivity for food security, advancing downstream processes and industrialization in priority sectors and developing the defense industry, she added.

These aim to help Indonesia's economic growth to rise to 8 percent over the next five years until 2029.

To reach this target, Indonesia needs to increase foreign direct investment to 2 percent of GDP, raise the industrial share of GDP to 21.9 percent by 2029, reach $400 billion in exports and achieve a 1.4 percent share of the global value chain.

In addition, the target is to increase state revenue to 18 percent of GDP by 2029, government spending to 20 percent of GDP, food production by 20 million tonnes of dry unhusked rice, regional GDP contribution to 45.6 percent, and the tourism GDP ratio to 5 percent.

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